DEFINITION of 'Adjusted Exercise Price'
1. An option's strike price after adjustments have been made for stock splits to its underlying security.
2. A term used to describe the strike prices for options written on Ginnie Mae pass through certificates.
BREAKING DOWN 'Adjusted Exercise Price'
1. Anytime changes occur on securities in which options are written, the strike price and delivery quantity must be adjusted in order to ensure that neither the long or short holder of the options are affected. For example, if an option for stock ABC had an exercise price of $50, and the underlying stock split 2 for 1, then the option would have an adjusted exercise price of $25 for 200 shares.
2. The interest rates assigned to GNMA pass through certificates differ from that of their benchmark rate. As such, these rates must be adjusted so that the investor will receive the same yield.

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How do I change my strike price once the trade has been placed already?
Learn how the strike prices for call and put options work, and understand how different types of options can be exercised ... Read Answer >> 
I own options on a stock, and it's just announced a split. What happens to my options?
When the underlying stock of your option splits or even begins issuing a stock dividend, the contract undergoes an adjustment ... Read Answer >> 
Can an option have a negative strike price?
The simple answer is that, at least when it comes to exchange traded options, an option can't have a negative strike price ... Read Answer >> 
How does the term 'in the money' describe the moneyness of an option?
Find out what in the money means about the moneyness of call or put options and what it indicates about the relationship ... Read Answer >> 
How do I set a strike price for an option?
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Where did the terms inthemoney and outofthemoney come from?
Learn what the terms "in the money" and "out of the money" mean, where the terms come from, and how investors use the terms ... Read Answer >>